“There are also some rumours that some material made from scrap is available in Europe that someone imported and is offering. That might have high cobalt, arsenic and molybdenum levels,” the trader added.

“The third reason is the summer holiday. Some people are destocking now. We don’t see any major enquiries for ferro-tungsten now.”

There are also indications that more material may be coming out of China in the wake of the removal of the export tax, sources have said.

The problem, a second trader said, is that stocks are still present in Rotterdam, and some market participants are loath to move them as they want to avoid losing more money.

“The Western trade won’t buy. You ship at $29.50 and by the time it gets there, it’s gone down to $28.50,” he said.